Dollars and Jens
Thursday, February 12, 2004
Shares of ImClone Systems Inc. were halted on Thursday after the shares fell 23 percent. Why did they fall? Well, the FDA approved Erbitux for the treatment of advanced colorectal cancer — news announced after the collapse.

So, again, why did they fall? Well, that latter link offers
Approval of the drug was widely expected in the market and indeed, many traders had professed an intention to "sell the news" when formal word of it hit. Still, Thursday's trading looked too extreme to be chalked up to normal market dynamics, and appeared to occur before the FDA posted the press release on its site.
"Still ... looked too extreme" could be termed "comic understatement."

In summary, I don't know, but I'd sure like to find out.

Update: SEC: Nasdaq Probes ImClone Stock Trading

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